Reagan-era economist scared by tariffs but open to 'great negotiator' Trump making them work
Legendary economist Art Laffer admitted on Wednesday he's terrified of President Donald Trump's tariffs, though he said he's hopeful that Trump will reduce them once he secures some trade deals.
In an interview with Axios, Laffer said that Trump's protectionist policies have ushered in the "most scary, in-flux" economic moment he's ever seen.
"I don't know how anyone looking at the facts could argue that protectionism doesn't create downturns," he told the outlet, adding, "The more protectionism there is, the greater the downturn. Reducing tariffs and protectionism causes a boom in the economy."
Longtime Trump Foe Letitia James Reviewing Possible Insider Trading Over President's Tariff Pause
Despite the criticism, the Reagan-era economist has been a fan of Trump over the years. He referred to him as "a great negotiator" as well as the "single best president of his lifetime."
Trump awarded Laffer with the Presidential Medal of Freedom in 2019 for his economic theory – dubbed the "Laffer curve" – that shaped President Ronald Reagan's tax cuts as well as those implemented in Trump's first term.
Read On The Fox News App
While generally supportive of Trump, the economist has been sounding the alarm over the reciprocal tariffs the president placed on imports from multiple countries earlier this month, before the administration announced a 90-day pause.
Gop Lawmaker Touts $19M Trump Tariff Success Story In Her District: 'New Model For American Manufacturing'
"Once you screw around with supply chains, production facilities, all of that, it's very hard to reverse that," Laffer told Axios.
He also referred to the tariffs as a "perverse government response" that "is a sure-fire way of causing an economic bust."
Still, Laffer expressed hope that Trump could make the policy work, as long as he makes good deals and reduces tariffs immediately after.
"You will find out with whether I'm right to be scared or right to be hopeful probably in 90 days — there's not a lot of time," he said, referencing Trump's pause on all tariffs except for those affecting China.
Click Here For More Coverage Of Media And Culture
In an interview with Fox News Channel earlier this month over the 90-day pause, Laffer seemed to express a more optimistic view of how Trump was leveraging tariffs.
"It's Trump at his very best, Martha," he said. "You know, I was hoping, and I believed, that he was going to be able to do this – although I always have trepidations 'cause I'm a wuss. I'm afraid."
Laffer continued, "But he, boy, he knows how to do these negotiations and he's going to eliminate a very serious problem of all these foreign tariffs, and non-tariff barriers and quotas against us, and we are the freest trade country. And now he's going to bring 'em back in and really bring down their barriers to trade. And we're going to have a much freer trade world."Original article source: Reagan-era economist scared by tariffs but open to 'great negotiator' Trump making them work
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles

Yahoo
30 minutes ago
- Yahoo
'I Literally Have Almost No Money'—MrBeast Shocks Fans by Borrowing Wedding Funds from His Mom
Jimmy Donaldson, better known as MrBeast, recently surprised fans by revealing on X that he's borrowing money from his mother to pay for his upcoming wedding. The disclosure comes despite an estimated $1 billion net worth and a business empire reportedly valued at $5 billion, highlighting a paradox of the creator economy: being asset-rich but cash-poor. "I literally have almost no money," MrBeast said in a June 2 post on X.. "I've just been reinvesting everything into content and 'literally' had to borrow money from my mom to help with my wedding lol." Don't Miss: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. This comes as his businesses—collectively known as Beast Industries—were reported by Bloomberg in February to be raising funds at a $5 billion valuation. "I think this year we'll spend around a quarter of a billion on content," Donaldson continued. According to Business Insider, his business generated just under $500 million in revenue last year. This high spending is driven by projects like MrBeast's Feastables snack brand and the Amazon Prime Video series, "Beast Games," which require substantial upfront capital. The show awarded a $10 million prize to its first-season winner—making it one of the most expensive game shows ever produced, Forbes reported. Despite financial constraints, Donaldson and his fiancée, Thea Booysen, are opting for an intimate, low-key wedding. "This will definitely be more family and friends—definitely more private. I don't take much vacation because of how hard I work... It will be the ultimate way to take some time away and enjoy things," MrBeast told People. Trending: Maximize saving for your retirement and cut down on taxes: . Booysen echoed the sentiment, telling the New York Post that they were considering holding the wedding on an island, away from public attention, and described the event as "nice but certainly intimate," focused on close family and friends. Goldman Sachs estimates that the creator economy could reach $480 billion by 2027, powered by more than 50 million active creators. However, MrBeast's experience illustrates that building billion-dollar ventures may come at the cost of short-term personal liquidity. Donaldson said on the "The Diary of a CEO" podcast that while he may be a billionaire "on paper," he has "less than a million dollars" in his actual bank account. Read Next: Invest where it hurts — and help millions heal:. The average American couple has saved this much money for retirement —? Image: Shutterstock UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article 'I Literally Have Almost No Money'—MrBeast Shocks Fans by Borrowing Wedding Funds from His Mom originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.

USA Today
35 minutes ago
- USA Today
Will Trump invoke the Insurrection Act? 'We'll see,' he says
Will Trump invoke the Insurrection Act? 'We'll see,' he says Show Caption Hide Caption Anti-ICE raid demonstrators protest into fourth night Anti-immigration raid protests are continuing into the fourth night as the Pentagon deployed active-duty U.S. Marines. President Donald Trump mulled invoking the Insurrection Act, which would give him more leeway to use the military for domestic purposes, as he deploys troops to Los Angeles in response to protests prompted by ICE raids in the region. "If there's an insurrection, I would certainly invoke it,' Trump said June 10 during an event in the White House. 'We'll see. But I can tell you, last night was terrible. The night before that was terrible." Trump deployed the California National Guard to Los Angeles over the objection of Gov. Gavin Newsom, sparking a lawsuit from the state. Marines were also sent to help the guard after protests erupted over his immigration enforcement efforts. The troops are limited to protecting federal property and law enforcement officers. The Insurrection Act would give Trump authority to use them more broadly. More: 'High-stakes game': Trump-Newsom clash pits two political heavyweights Trump said there were parts of Los Angeles on June 9 where "you could have called it an insurrection. It was terrible." Newsom described Trump's actions as "the acts of a dictator" and accused the president of 'inciting and provoking violence,' 'creating mass chaos,' and 'militarizing cities.' Legal experts say invoking the Insurrection Act is an extreme step. It has been done 30 times in U.S. history. "The invocation of it would be viewed as a pretty dramatic act," said Duke Law Professor H. Jefferson Powell. Powell said the law is "dangerously broad." The last time the Insurrection Act was invoked was in May 1992, by President George H.W. Bush at the request of California's governor, to quell rioting in Los Angeles after four White police officers were acquitted for beating Black motorist Rodney King.
Yahoo
35 minutes ago
- Yahoo
What the 'Big, Beautiful' tax bill means for municipal bonds
JPMorgan raised its forecast for municipal bond sales in 2025 to $560 billion as US lawmakers deliberate over President Trump's "big, beautiful" tax and spending bill in the Senate. Goldman Sachs Asset Management co-head of municipal fixed income Sylvia Yeh weighs in on what policy changes to the US tax code could mean for municipal bond investors, as well as valuation catalysts in comparison to Treasury yields (^TYX, ^TNX, ^FVX). Goldman Sachs manages several municipal bond ETFs (GMUB, GCAL, GMNY, GUMI). To watch more expert insights and analysis on the latest market action, check out more Catalysts here. Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data